From yesterday’s high at $5481, the price of Bitcoin has decreased by 8.8% measure to the lowest point of $4999.3 the price has been on FXOpen UK.
The price has started falling down fast since yesterday’s high as the majority of the decrease occurred in a matter of hours and as the price is still in a downward trajectory we are yet to validate if we are seeing the start of a new downtrend or is this a minor retracement before another higher high.
On the hourly chart, we can see that the price came up to around the upper still unconfirmed resistance level which could be confirmed as a resistance point now that the price got rejected there and started falling down.
This resistance level was outlined as a potential ascending channel in which the price has been correcting since the 15th of December when the first impulsive move to the upside started. Now that the price came up to those levels and got rejected the downside movement we are seeing could be the start of a higher degree impulse wave to the downside or could be a minor retracement before another retest which I think it’s more likely at this point in time.
As we are seeing the development of a three-wave correction to the upside from 15th of December, the increase we have seen from 8th of February is the third wave which is the five-wave impulse and as it hasn’t ended we are now more likely seeing its 4th wave developing before another increase is to occur.
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